U.S. and European stocks fell,
driving the Dow Jones Industrial Average down from an almost
four-year high, and the euro declined the most in three weeks as
Greek leaders wrestled with spending cuts to get aid and avert a
default. German bonds rose, and commodities dropped.

European leaders stepped up pressure on Greek politicians
to accept the conditions for a 130 billion-euro ($171 billion)
bailout, saying time was running out. French President Nicolas Sarkozy met German Chancellor Angela Merkel today, while a
gathering of Greek political leaders was delayed until tomorrow
as they struggled for a unified response. China’s economic
growth would be cut almost in half if Europe’s debt crisis
worsens, the International Monetary Fund said.

“We are entering into a fairly critical 24 hours for
Greece,” Jim Reid, a strategist at Deutsche Bank AG in London,
wrote in a report. “The focus has shifted from the private
sector involvement negotiations toward the lack of political
consensus and whether the interim coalition government will
accept the conditions” for its second bailout package, he said.

Best Since 1987

U.S. stocks fell after the S&P 500 posted a fifth weekly
rally, the longest winning streak since January 2011, and rose
6.9 percent this year for the best annual start since 1987.
Financial institutions posted the biggest decline today among 10
industries, followed by raw-material producers. Indexes for both
S&P 500 groups retreated 0.5 percent.

The Stoxx Europe 600 ended a four-day advance as basic-
resources companies and insurers led losses.

The euro depreciated 0.2 percent to 100.57 yen and slumped
0.2 percent versus the Swiss franc. The Dollar Index, which
tracks the U.S. currency against those of six trading partners,
advanced 0.1 percent after gaining as much as 0.8 percent.

Oil in New York dropped to $96.91 a barrel, while copper
futures slumped to $3.8645 a pound. China is the biggest buyer
of the metal.